Consumer sector displaces financial industry, lifts turnover by 62%

For the first time in several months, the consumer goods industry outperformed the financial sector, dominating in volume terms at the end of last week’s transactions on the equities sector of the Nigerian Exchange Limited (NGX),

It led the activity chart with 1.255 billion shares valued at N51.9 billion in 2,581deals, thus contributing 61.9 per cent to the total equity turnover.

Following the consumer sector, last week was the financial services industry with 537.9 million shares worth N4.6 billion in 8,015 deals.

The ICT Industry ranked third with a turnover of 76.906 million shares worth N704.3 million in 933 deals.

Trading in the top three equities namely BUA Foods, Wema Bank Plc, and Transnational Corporation of Nigeria (Transcorp) accounted for 1.349 billion shares worth N51.3 billion in 1,120 deals, contributing 67 per cent to the total equity turnover.

Further breakdown of last week’s trading showed that the market opened for four trading days last week as the Federal Government declared Monday, January 3, 2022, a public holiday to mark the New Year celebrations.

Consequently, a turnover of 2.027 billion shares worth N59 billion was recorded in 15,750 deals by investors on the floor of the exchange, in contrast to a total of 995.361 million units worth N13.2 billion that was exchanged in 10,264 deals on January 2, 2022.

Analysts at Afrinvest said: “Next week, we expect the positive performance to be sustained as more investors take positions ahead of the dividend season.”

Cordros Securities said: “In the near term, we believe positioning for 2021FY dividends will continue to support buying activities in the market even as institutional investors continue to search for clues on the direction of yields in the FI market.

“However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”

Vetiva Dealings and Brokerage said: “The market closed out the week strong as investors remained bullish on BUAFOODS. We expect a mixed trading session to start the new week as investors continue to cherry-pick attractive counters across the board.”

The NGX all-share index and market capitalisation appreciated by 2.66 per cent and 5.97 per cent to close the week at 43,854.42 and N23.628 trillion respectively.

All other indices finished higher except NGX Premium, NGX insurance, NGX AFR Div Yield, NGX Meri Growth, NGX Consumer Goods, NGX Lotus II Indices, which depreciated by 0.47 per cent, 0.93 per cent, 0.97 per cent, 0.66 per cent, 0.87 per cent, and 0.12 per cent respectively while the NGX ASem and NGX Sovereign bond indices closed flat.

Also, a total of 11,926 units of an exchange-traded fund (ETF) valued at N894,080.79 were traded last week in 26 deals.

Similarly, a total of 50,225 units valued at N50.8 million were traded last week in 13 deals compared with a total of 7,718 units valued at N8.003 million transacted in six deals during the preceding week.

On the price movement chart, 40 equities appreciated last week, higher than 37 equities in the preceding week.

Furthermore, 31 equities depreciated, higher than 21 equities in the previous week while 84 equities remained unchanged compared to 99 equities recorded in the previous week.